Bitcoin price dropped by about 10% (later rebounded) as a result of Binance glitch; Binance denies crypto hack rumors

The price of Bitcoin dropped on Wednesday from $10,740 to $9,690, that is about 10.8%. Bitcoin later regained its footing later in the afternoon and climbed back up to $10,021 as the time of writing.

The rumor was that the price drop is due to glitch in Binance exchange system due to hackers. However investor attributed the drop to the latest SEC announcement that crypto exchanges must register with agency.

Below is the statement from SEC:

If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”

“The SEC staff has concerns that many online trading platforms appear to investors as SEC-registered and regulated marketplaces when they are not. Many platforms refer to themselves as “exchanges,” which can give the misimpression to investors that they are regulated or meet the regulatory standards of a national securities exchange.

As for the report of the glitch, Binance spokesperson denied the crypto hack rumors.  Zhao Changpeng, chief executive officer of Asia-based Binance, said in a tweet Wednesday, “All funds are safe.” “There were irregularities in trading activity, automatic alarms triggered. Some accounts may have been compromised by phishing from before. We are still investigating.”

https://twitter.com/cz_binance/status/971454040704872448

His tweet did not stop panic traders from venting their frustration online. Bitcoin is now priced at 50% of its all high price of about $20,000.